This song is about acceptance. Those who follow blindly (sheep) are accepted or go to heaven, and those who form their own opinions are goats, and are not accepted or go to hell.
The lyrics are based on a passage in the New Testament of The Bible: Gospel of Matthew chapter 25. In this passage, a shepherd divides his sheep and goats, with the sheep going to heaven and the goats to hell.
Because goats have cloven feet, they were considered unclean. The lyrics, "I just want to play on my panpipe, I just want to drink me some wine. As soon as you're born, you start dying, so you might as well have a good time," indicate that you can't help whether or not you're born with cloven feet, so just don't worry about it and have a good time.
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